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F/y/i--
By way of background, both US Dept. of Commerce and US Dept. of Treasury oversee the US Antiboycott Program. Each agency has different policy interests and thus, while there is a lot of regulatory overlap bewteen the two agengies' rules, there are also places where the same incident is treated differently depending on which agency is involved. V&E have confirmed with the US Dept of Commerce that there would be no violation if we left the Voyage Charter prohibition on trading into Israel in the document (although I believe OLNG have agreed to delete it) and there is also no independent reporting obligation under Commerce Dept. regs on Enron. As is frequently done in regulatory practice, V&E provided a copy of the relevant Voyage Charter clause to Commerce Dept. on behalf of an "anonymous" client. V&E previously advised that this type of prohibition is expressly allowed under the Treasury Dept. Regs. Thus, there appears to be no further reason for concern on this issue. Please let me know if OLNG have responded with any comments. Kind regards, Dan ----- Forwarded by Daniel R Rogers/ENRON_DEVELOPMENT on 03/02/2001 11:10 AM ----- "Lichtenbaum, Greta" <glichtenbaum@velaw.com< 02/27/2001 10:02 AM To: "Rogers, Daniel R. (Enron)" <daniel.r.rogers@enron.com< cc: Subject: RE: Antiboycott I just checked with the Department of Commerce Antiboycott office re: that clause. It is permitted, and not reportable. He agreed with my assessment that it is simply not boycott related, rather it is a war risk clause. -----Original Message----- From: Daniel.R.Rogers@enron.com [mailto:Daniel.R.Rogers@enron.com] Sent: Tuesday, February 27, 2001 8:46 AM To: glichtenbaum@velaw.com Subject: Re: Antiboycott Greta, I just realized that the e-mails I sent from London over the past few days have not gone through due to system acess problems -- sorry for the apparent disappearing act! I'm still in Enron's London offices but will be back in Houston late Wednesday afternoon. I'm attaching a copy of the proposed Voyage Charter Party between Enron LNG Marketing LLC (an indirectly wholly owned subsidiary of Enron Corp.) and Oman LNG L.L.C. (which is majority owned by the Omani government, with additional foreign investment from Shell, Total and others). The reference to Charterer's agreement that it will not order the vessel to call on any port in Israel is found in Part II, Clause 5 (Safe Berth) on page 9. We confirmed that the language was inserted by STASCO (a privately-held Shell marine transportation affiliate), who is a contract operator of Oman LNG's vessels. Apparently STASCO's concern was to restrict Charterer's (Enron's) ability to direct the vessel to any potential risk area due to political instability or actual hostilities. It is true that the cost and continued availability of vessel's marine insurances are largely influenced by whether she is trading into unsafe ports, and it appears that STASCO produced the list of prohibited countries/ports in Clause 5 (which includes, among others, Israel) on the basis that they, as worldwide operators of Shell's fleet, believe such countries/ports to be unsafe for marine trade. The commercial representatives of Oman LNG were not aware of the language that STASCO inserted and indicated that they did not intend to create any potential antiboycott problems for Enron or any of the other bidders. When we discussed the issue, Oman LNG promptly agreed to the deletion of the references to "Israel" and will rely instead on the general language which prohibits Charterer from ordering the vesel to any unsafe port. Thus, it looks like we just need to determine whether under the circumstances Enron has any reporting obligation under either the Treasury Regs or Commerce Dept. Regs. as a result of receiving this request with the original Clause 5 references to a prohibition on trading the vessel into Israel. I hope this information helps. Please let me know if you need anything further -- I can be reached in London at 011-44-207-235-1234, Room 523 or by mobile at 011-971-50-457-2349. Thanks again for al of your help. Kind regards, Dan Rogers Assistang General Counsel Enron Global Markets/Wholesale Services 713-345-7804 (See attached file: ELM-OLNG-VOYAGE-CHARTER-PARTY(2-22-01).doc) "Lichtenbaum, Greta" To: "Rogers, Daniel R. (Enron)" <daniel.r.rogers@enron.com< <glichtenbaum@ cc: velaw.com< Subject: Antiboycott 02/26/2001 11:56 AM Hi Dan, hope your trip went well. Following up on our conversations last Friday, I have a call in to the Antiboycott Office; have not heard back. In the interim, could you send me the agreement? We should review it for "governing law" antiboycott issues. I'd also like to have the exact clause in front of me when I speak to the Antiboycott Office. Thanks. Greta Lichtenbaum (202)639-6733 ++++++CONFIDENTIALITY NOTICE+++++ The information in this email may be confidential and/or privileged. This email is intended to be reviewed by only the individual or organization named above. If you are not the intended recipient or an authorized representative of the intended recipient, you are hereby notified that any review, dissemination or copying of this email and its attachments, if any, or the information contained herein is prohibited. If you have received this email in error, please immediately notify the sender by return email and delete this email from your system. Thank You ++++++CONFIDENTIALITY NOTICE+++++ The information in this email may be confidential and/or privileged. This email is intended to be reviewed by only the individual or organization named above. If you are not the intended recipient or an authorized representative of the intended recipient, you are hereby notified that any review, dissemination or copying of this email and its attachments, if any, or the information contained herein is prohibited. If you have received this email in error, please immediately notify the sender by return email and delete this email from your system. Thank You
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